Tether, in light of the new GENIUS Act legislation, announced the launch of a new version of its stablecoin to meet U.S. market requirements.
Tether and the GENIUS Act: A New Beginning
Following the signing of the GENIUS Act, Tether CEO Paolo Ardoino highlighted the significance of this moment for the company, stating: "We are very proud to be mentioned by the president, as it reflects all the great work done by our team over the past few years". Once criticized by regulators, Tether is now becoming more open to compliance and public audits.
Two Stablecoins for Two Markets
Paolo Ardoino announced the launch of two stablecoins: USDT, which will be used outside the U.S., and a new version intended for American institutions. Ardoino noted: "Institutions are used to super efficient markets, and they count every basis point; that is why we must design something suited to this new market."
Crypto Under Pressure: Risks and Opportunities
Tether's entry into the U.S. market could significantly impact Bitcoin liquidity but also raises concerns about the stability of the cryptocurrency market. With USDT valued at $161 billion, Tether can increase trading volumes on American exchanges, leading to higher volatility. Smaller crypto companies may face challenges under the new regulations, while larger players like Tether can absorb these impacts.
Tether's shift in approach towards the U.S. market could have significant repercussions for both the company and the overall cryptocurrency ecosystem. However, questions remain about how the new regulations will impact smaller players in the market.
